By Sarah Lizee
Olympia, Wash., July 7 – Morgan Stanley Finance LLC priced $2.82 million of contingent income autocallable securities due June 29, 2023 linked to the worst performing of the common stocks of Costco Wholesale Corp. and Ulta Beauty, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
Each quarter, the notes will pay a contingent coupon at an annual rate of 18.25% if each stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date after six months.
The payout at maturity will be par unless any stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying stocks: | Costco Wholesale Corp. and Ulta Beauty, Inc.
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Amount: | $2.82 million
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Maturity: | June 29, 2023
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Coupon: | 18.25% per year, payable each quarter that each stock closes at or above coupon barrier on determination date for that period
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Price: | Par
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Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
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Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date after six months
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Initial share prices: | $296.56 for Costco, $189.99 for Ulta
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Coupon barriers: | $177.936 for Costco, $113.994 for Ulta; 60% of initial share prices
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Downside thresholds: | $177.936 for Costco, $113.994 for Ulta; 60% of initial share prices
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Pricing date: | June 29
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Settlement date: | June 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.35%
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Cusip: | 61771BSS4
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